JPMorgan Chase, Citi and Wells Fargo Lose $5,606,000,000 to Bad Loans in Just Three Months
Three Major US Banks Write Off $5.6 Billion in Bad Loans as Credit Card Debt Reaches Record High
As the first quarter comes to a close, three of America’s largest banks are facing the impact of a combined $5.6 billion in bad loans, reflecting the growing trend of escalating credit card debt in the United States.
According to the latest earnings reports, JPMorgan Chase, Citigroup, and Wells Fargo have reported significant net charge-offs in the first three months of 2026. JPMorgan Chase recorded $2.3 billion in net charge-offs, while Citigroup posted $2.2 billion of net credit losses. Wells Fargo reported $1.106 billion of net charge-offs during the same period.
JPMorgan Chase highlighted that firmwide credit costs totaled $2.5 billion, with the majority coming from the $2.3 billion in net charge-offs. Citigroup’s U.S. Personal Banking business recorded a $2.1 billion provision for credit losses, including $1.742 billion of net credit losses in U.S. branded cards and retail services, with other Citi businesses contributing to the total net credit losses.
Despite these challenges, JPMorgan Chase CEO Jamie Dimon remains optimistic about the resilience of the US economy.
“The U.S. economy remained resilient in the quarter, with consumers still earning and spending and businesses still healthy. Several tailwinds are supporting this resiliency, including increased fiscal stimulus, the benefits of deregulation, AI-driven capital investment, and the Fed’s asset purchases.
However, there are significant risks on the horizon, such as geopolitical tensions, energy price volatility, trade uncertainty, and elevated asset prices. We must be prepared for a wide range of environments.”
Wells Fargo reported $1.106 billion in net charge-offs, with its provision for credit losses reaching $1.135 billion. Data from the U.S. Federal Reserve shows that consumer credit card and revolving loans at all commercial banks have reached a new high of $1.083 trillion for the week ending April 1, 2026, indicating a concerning trend.
Stay updated with the latest news by following us on X, Facebook, and Telegram.
Don’t miss out on important updates – subscribe to get email alerts delivered directly to your inbox. Explore The Daily Hodl Mix for more curated content.
Generated Image: Midjourney
